READJUSTMENT URGED

Evening Post, Volume CXXXI, Issue 121, 24 May 1941, Page 11

READJUSTMENT URGED

FARMERS' OPINION

TOO MUCH SPENDING

The formation of a National Government on the same lines as in Great Britain was advocated at the annual conference of the Makara-Hutt Valley branch of the Farmers' Union yesterday, and a motion giving effect to that view was carried after discussion.

The president, Mr. R. Sievers, presided, and in his presidential address urged the need for a radical alteration in the economic structure in New Zealand following on the heavy decrease in export income and the difficulty of securing goods from abroad. "If it is desired to keep our financial system stable, then there is only one course open to the Government," he said. "The amount of spending power in the hands of the people must be cut down. When I am saying this, I realise that I am not propounding a popular policy. I realise that I am in something of the same position as the parent of a child who has gorged himself with fruit, but. nevertheless, it is quite obvious that when such excesses have been committed medicine is a necessity.

"I say now, and I say it without fear of contradiction, that all of us in New Zealand must be prepared to accept a lower real income. The difculty even if we are heavily taxed to take away the surplus spending power it a continually rising price level. For while it is possible to control the price of some things, it is not possible to control the price of everything, and one has only to look at the figures of bank-notes issued to see how expanded is our note issue. It is at least twice the size that is necessary, and any question of obtaining relief by further issues of credit from the Reserve Bank can, therefore, be ruled out as impracticable.

"The farmers of the Dominion have done everything which has been asked of them. They were asked for more baconers, and they produced them. They were asked for more cheese, and they produced it. They were asked to produce linen flax, and, within a fortnight, and with the aid of the union, the acreage quota desired was arranged for. The farmers of New Zealand have done their work earnestly and well, and there has been no question of strikes, hold-ups, or go slow."

The election of officers resulted:— President, Mr. R. Sievers; vice-presi-dents, Messrs. E. Windley, J. Maher, L. C. Bryant, H. Scholes, and G. Bruce; treasurer, Mr. E. M. Lynch; auditor, Mr. J. L. Arthurs.